20000218

Release of

cotton by TCP in

local market

welcomed

RECORDER REPORT

KARACHI: The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has welcomed the release of 38,000 bales of cotton in the market by the Trading Corporation of Pakistan (TCP) and expressed the hope that the sale of cotton by the TCP would help to bring the prices of raw cotton to a workable level.

Prgmea Central Chairman Javed Chinoy, said in a statement that the government had brought the TCP into the picture in order to stabilise the raw cotton prices. This was not only in the interest of the growers but also low raw cotton prices, the ancillary industries were able to purchase cotton yarn at a competitive prices.

He said the market operation of the TCP was a big success and the raw cotton prices were stabilised. However, unfortunately later on prices of cotton increased at an exorbitant pace. The increase in prices at a quick pace took everybody in the market by surprise. It resulted in panic buying of cotton as well as the cotton yarn.

Chinoy said that the yarn prices had increased to such an extent that in a very short time, the workable export orders had turned into loss orders resulting in millions of dollars loss to the country in foreign exchange.

Chinoy pointed out that at this stage most of cotton had already been lifted from the growers and the cotton sale by the TCP would not affect the small growers in any way.

He urged the government to ensure that the value-added textile sector got the raw material easily at cheaper prices so that they could boost export of the value-added textile products.